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Mobility-Based Explanation of Crime Incentives

Author

Listed:
  • Yoonseok Lee

    (University of Michigan)

  • Donggyun Shin

    (Kyung Hee University)

Abstract

The canonical economic model of crime is extended to include individuals’ expectation of future income mobility as an additional crime determinant. The model predicts that with all else being held constant including net gain from current criminal activity, reduced upward mobility among the poor increases crime rate whereas enhanced downward immobility among the rich decreases crime rate. These predictions are empirically supported by country-level panel data. In addition, a typical change in income distribution was implemented, such that both the poor and the rich groups contribute to crime rate with a greater contribution among the poor.

Suggested Citation

  • Yoonseok Lee & Donggyun Shin, 2012. "Mobility-Based Explanation of Crime Incentives," Korean Economic Review, Korean Economic Association, vol. 28, pages 51-67.
    • Handle: RePEc:kea:keappr:ker-20120630-28-1-03
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    File URL: http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-20120630-28-1-03.pdf
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    References listed on IDEAS

    as
    1. Michael Baker & Gary Solon, 2003. "Earnings Dynamics and Inequality among Canadian Men, 1976-1992: Evidence from Longitudinal Income Tax Records," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 267-288, April.
    2. Joanne M. Doyle & Ehsan Ahmed & Robert N. Horn, 1999. "The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 717-738, April.
    3. Demombynes, Gabriel & Ozler, Berk, 2005. "Crime and local inequality in South Africa," Journal of Development Economics, Elsevier, vol. 76(2), pages 265-292, April.
    4. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter.
    5. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
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    Cited by:

    1. Yoonseok Lee, Donggyun Shin, Kwanho Shin, 2013. "Social Consequences of Economic Segregation," Korean Economic Review, Korean Economic Association, vol. 29, pages 189-210.

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    More about this item

    Keywords

    crime; immobility; income distribution;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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